The present study attempts to examine how the stylistic aspects of Text World Theory (TWT) can be used in Literature and Language Teaching classrooms in order to help students to improve their critical understanding and interpretation. The pedagogical stylistic application of this theory can enhance ELT students' language awareness, creative reading skills as well as reader-response skills and deepen the interaction between readers and texts. The study focuses initially on the efficacy of the use of short stories for Literature and Language Teaching courses and, then, adapts a sample short story entitled "The Bracelet" by Yoshiko Uchida according to the three layers of the Text World Theory which are "discourse world", "text world", and "sub-world". The researcher then offers students pedagogical stylistic applications through a) what are the building blocks of the story which can be identified by the Text World Theory? and b) How do these building blocks enable students to make connections with the text? This latter will help them establish a link between the worlds of the main characters and their own. The results of the focus group interview revealed that using this theory in EFL context enhanced language awareness, creative reading skills and reader-response skills in students.